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A Total Quality Management (TQM)-based benchmarking study looked at the leadership of universities and colleges to identify, understand, and disseminate their best practices. The study found that outstanding leaders encouraged and promoted innovation. This spurred the development of novel programs and methods, even when to do so was extremely difficult, during cutbacks and budget crises. In particular, innovation was promoted through defined and agreed upon goals, brainstorming to determine the questions that would assist in attaining the goals, and the facts that these questions led to. Once goals, questions and facts had helped the institution assess where it was at present and conceptualize what were reasonable possibilities for the future, the institutions could consider some specific innovative programs. Successful innovative programs strive to be best, attract external funding, and attract students and faculty. The study showed that these should be led by a vigorous champion, generate good publicity for the institution, and be supported by key target groups. Some models for innovation were the 3M model that promotes innovation within that corporation's culture, the fast-dash program whose existence is very independent, the matrix model where four fundamentals (quality, creativity, ethics, and leadership) form the basis of every course; as well as standard models for change. Overall, the study found that institutions that employ TQM techniques to enhance creativity and innovation survive better and attract funds even during times of budgetary cutback. (JB)